Currently, the Stellantis Group finds itself at the center of various controversies, initiated by the UAW union, which Italian unions have subsequently joined, demanding clarity and transparency from the automotive group’s president, John Elkann, regarding Carlos Tavares’ management. Following harsh accusations from Shawn Fain, who pointed fingers at Tavares, mentioning his enormous salary of $39.5 million despite ongoing difficulties and layoffs, Stellantis has released an official statement.
Stellantis responds to UAW union accusations in an official statement
The automotive group led by CEO Carlos Tavares stated: “To ensure the future competitiveness and sustainability of the company, necessary to preserve jobs in the US manufacturing sector, it is essential that the business case for all investments aligns with market conditions and our ability to meet a wide range of consumer demands. Therefore, Stellantis confirms that it has notified the UAW that plans for Belvidere will be delayed, but firmly maintains its commitment. As always, the company is committed to engaging with the union in productive, respectful, and forward-looking dialogue.”
“Our group has not violated the commitments made in the investment letter included in the 2023 UAW collective bargaining agreement and strongly opposes the union’s accusations. The UAW accepted language that expressly allows Stellantis to modify product investments and employment levels. Therefore, the union cannot legally strike over a violation of this letter at this time,” the statement reads.
Indeed, the UAW union president threatened strikes during his speech at the Democratic Party Convention in Chicago. On this occasion, Shawn Fain criticized Stellantis, claiming that it had violated the agreement signed last year for the reopening of the Belvidere plant. This situation continues to create a very difficult climate, with many dealers concerned about the lack of profitability due to excessively high product prices, which are not attracting customers.